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Compliance wit� Cou�c�l-Ada�ted Fiseai and Bu�get Pplicies
<br />Earlier t�is year, the City Council adopted a���ber of fiscal and budge� policzes. At the �ime, i�
<br />was nc�ted tlaat the City had not �ully ad�ered to these policies in the past. T�e 2008
<br />Recommended Budget begins a 5-y�ar plan to achieve iuli compliance. i'i�is includes not only
<br />the recomme�dafioi� for a structurally balanced budge�, but a�so added emphasis on
<br />strengihening the City's cash reserves in the City's core operatrng funt�s.
<br />Ta achieve compliar�ee with these poJ�cies, siruetura� changes z�ust be rraade �vith regard to how
<br />the City b�dgets far its core fun.ctians. Under the curre�t r�odel, l OQ% o£ incoz�aing revenues are
<br />spen� in the curren� budget year. T�e new budget �adel m�st eith�r; 1) a11ow �or an increase in
<br />�he �roperty tax levy tha� is above and beyand what is needed in the cuz�rent b�dg�i year, 2)
<br />reduce prograrns oz servic�s w�zle maintaining c�rrent funding levels, or 3) a coz�bination o£th�
<br />t�vva.
<br />it is reco�nriend�d ��at the City achie�ve complianee vvith the rnewly adopted policies aver a 5-
<br />year period, This wili req�ire an additional $250,OQ0 (plus adjustments �['or inflation) each year
<br />#'oz° the next 5 years. TI�ese rno:�zes wata�d be dzrected to !�e C�ty's Gen�ral and Parks &
<br />Recreati4n T'unds which are below recommended levels, For a�ypical siz�gle,faz�aiiy hame, tk�is
<br />vvould translate inta an addi�io�a� 1.10 p�r manth for the ne�t 5 years.
<br />SustainabLe Asset Repiacement Fu�ding Meehar�is�es
<br />As discussed an prior occasiQns, the City �as no� been setting aside sufficient fi.uids ta re�lace
<br />Ci�y ass�ts at the end of �heir useful lives. As a result, replacernent oi sorr�e o� tlz� City's assets
<br />has been delayeci. Ul�irnately tk�is will result in higher main�en.a�ce costs, a�d can lead to unsafe
<br />£acilities, vehicles, az�d equipment.
<br />In order to su��ain th� City's assets, and re�lace tk�ez�n at ��ae optirrial iizne, a revised
<br />comprehensive asset replaceznent plan sha�ld be adopted. The following �able d�splays the
<br />o�rrent fundiiig amnunt along with the recommended �unding amaunts over �he next S years.
<br />Asset TyvE
<br />Vehicles & Rollii�g Stock
<br />GeneraI City Faeilaties
<br />Parlc Infrastr�cEure
<br />5treet inirastructure
<br />Water I��frastructure
<br />Sani�ary Sewer Inf'rastructure
<br />Stpr►n Sewer Infrastructure
<br />Current 2008 2009 2010 20I1 2012
<br />Fundin ��zndi� �'undin� Fundin �undin� Fundin�
<br />$ 340,040 $ 3G5,040 $ 390,040 � 415,040 $ 440,040 $ 465,040
<br />6,440 5�,0f10 10�,OOfl 15Q,OU0 200,004 25E3,000
<br />t 75,flti0 21b,000 25�,00� 298,0�0 339,000 38(3,0(lQ
<br />2,004,000 2,Ofl0,000 2,Ot}fl,�OCi 2,OD0,000 2,OQfl,000 2,0�0,�00
<br />30�,OQQ 300,a0� 300,�OQ 300,000 300,�QQ 34Q,OQ�
<br />175,000 i8I,000 187,d00 I93,000 199,a0(} 20S,Q00
<br />300,00� 306,40Q 312,8Q4 319,200 325,64E} 332,000
<br />$ 3,296,�4Q $ 3,4i8,440 � 3,54$,$49 $ 3,6'i'�,25f3 $ 3,$05,65I $ 3,934,452
<br />Ovex th� next S years, tatal fiu�.d.ing wi11 inerease frorn $3.3 million to �early $4A millio�.
<br />Beginning in 2013, the Plan should only require inflatianary-type increases, with the exception
<br />of �he amo�.nt for Genera� city facilities, wi�ich rnay re��ire ad�itia�al funding. These add'riional
<br />fiuiding needs will iznpac� the proper�y tax l�vy ai�d �.tility �ser charges.
<br />Under f�is Plan, a t�picai hom�awner �i11 incur an a�ditior�al $0.55 per rnonth in 2008, $0.55
<br />mor� in 2009, and so an thraugh 2012 (holding all o�her factors constant). �f this amoun�, about
<br />half, or $0.3a er month wi1l be supported by property taxe�.
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